SEC: Tokens and exchanges fall under Securities Act

SEC’s key findings from DAO report:

  • Commission has determined that DAO Tokens are Securities under the Securities Act and Exchange Act.
  • Foundational Principles of the Securities Laws apply to Virtual Organisations or Capital Raising Entities making use of Distributed Ledger Technologies.
  • Issuers must register offers and sale of Securities unless a valid exemption applies
  • A System that meets the definition of an Exchange must register as a National Securities Exchange or operate pursuant to an Exemption from such registration

Read the SEC DAO paper here.